Using RSI Divergence Candle Color Changes as Trading Signals

Summary

The document describes an indicator built around RSI divergence candles and suggests using changes in candle color as trading signals. It says the indicator was adapted from an idea shared by another forum user, but provides no explanation of how the indicator detects divergence or maps it to color changes.

A broad chart example is mentioned, though the text does not include enough detail to evaluate that example or establish performance. The note offers no entry, exit, or risk rules, and it supplies no evidence from testing. Traders would need to inspect the indicator on a chart and independently define and validate a complete strategy before relying on the signal.

Key ideas

• The indicator presents RSI divergence through candle color changes.
• Color changes are proposed as signals.
• The source provides no explanation of the detection method or trading rules.
• No performance evidence or risk controls are described.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.